The new personal consumption expenditures price index numbers reported Friday morning by the Bureau of Economic Analysis don’t show prices falling last month, and so may be a bit of a disappointment for the Fed, which is working to lower inflation by keeping interest rates elevated.
Still, there are some bright spots. Core PCE inflation, a measure of inflation that strips out volatile energy and food prices, fell 0.3 percentage points to a 2.9% year-over-year rate. That is slightly better than what economists were expecting
Despite price growth declining over the past year, overall inflation is still running above the Fed’s goal of 2% annual price growth.
On a monthly basis, prices rose 0.2 percentage points in December. Prices had declined slightly in November.
Other recent inflation